Central Bank's Response
The central bank of Turkey has been working diligently to handle the counterfeiting problem. It has shared a report and guidance with lenders after examining the fake U.S. banknotes. By doing so, they are alerting the banking sector and providing necessary information to combat this issue. Additionally, they have issued statements emphasizing the importance of coordinated action with relevant judicial authorities.According to a written statement from the Central Bank of the Republic of Türkiye (CBRT), counterfeit banknotes that have been in the news due to the increase in their circulation were sent to the bank by judicial authorities for an expert report. The expert reports on these counterfeit banknotes were then shared with judicial authorities as well as the Banks Association of Türkiye and the Participation Banks Association of Türkiye. This helps in creating a unified front against counterfeiting.
Furthermore, the CBRT has provided necessary guidance to caution against counterfeiting in technological infrastructure. This shows their commitment to staying ahead of the curve and ensuring the security of the financial system.
Impact on Banks and Currency Exchanges
Several banking sources have reported that several foreign exchange offices and banks are no longer accepting some U.S. dollars. This is due to concerns over the circulation of counterfeit currency. Although the exact amount of counterfeit currency in circulation is unclear, the situation has led to temporary disruptions in transactions.Some $50 bills and $100 bills are suspected of being counterfeit and are not currently detected by money-counting machines. This poses a significant challenge as it can lead to incorrect transactions and potential losses for both banks and customers. The Turkish Banking Association (TBB) is taking steps to address this issue by checking and updating money-counting machines and ATMs to halt the further circulation of counterfeit bills.
A source with knowledge of the matter has stated that a planned rapid system-wide update to money-counting machines will make detection possible. This is an important step in ensuring the integrity of the currency and preventing counterfeiting from going undetected.
Investigation and Allegations
Earlier in the day, local media reported that the official investigation by the Istanbul Chief Public Prosecutor’s Office was launched upon the claim that counterfeit dollars printed abroad had been put on the market. The Istanbul Chief Public Prosecutor’s Office Anti-Smuggling, Narcotics and Economic Crimes Investigation Bureau took action following allegations that fake $50 and $100 bills printed abroad were being put into circulation in Istanbul and that some exchange offices in the Grand Bazaar had stopped accepting dollars.Money-counting machines and ATMs with outdated software reportedly failed to detect the counterfeit currency, prompting a temporary suspension of transactions involving $50 and older $100 bills at currency exchange offices. The fake bills have reportedly originated from the Middle East, Asia, and the Balkans. However, a report by the private broadcaster Bloomberg HT suggested that the fake dollar banknotes are being smuggled into Türkiye from the southeastern border, with estimates suggesting that the total amount could exceed $1 billion.